Allied Properties Real Estate Investment Trust Announces Acquisition of Strategic Infill Properties in Montreal & Calgary & E...
20 Janeiro 2014 - 8:50PM
Marketwired
Allied Properties Real Estate Investment Trust Announces
Acquisition of Strategic Infill Properties in Montreal and Calgary
and Establishment of Fourth Intensification JV With Riocan in
Toronto
TORONTO, ONTARIO--(Marketwired - Jan 20, 2014) - Allied
Properties REIT (TSX:AP.UN) announced today that it has entered
into agreements to purchase the following properties for $69.2
million:
Address |
Total GLA |
Office GLA |
Retail GLA |
Parking Spaces |
85 Rue St. Paul, Montreal |
79,778 |
79,778 |
- |
25 |
The Pilkington Building, 402 - 11th Avenue S.E., Calgary |
48,223 |
48,223 |
- |
44 |
The Biscuit Block, 438 - 11th Avenue S.E., Calgary |
54,073 |
54,073 |
- |
39 |
|
182,074 |
182,074 |
- |
108 |
"We continue to find high-quality infill properties that fit
squarely within our investment parameters," said Michael Emory,
President & CEO. "In addition to being immediately accretive,
each of these properties is close to one or more of our existing
properties. The Calgary properties form nearly half a city block in
the heart of the Warehouse District."
Allied also announced the establishment of a fourth
intensification joint venture with RioCan REIT through the
acquisition of an undivided 50% interest in 491 College Street and
289 Palmerston Avenue in Toronto. "This is our fourth
intensification JV with RioCan," said Mr. Emory. "It will enable
both of us to build on the collaborative relationship that has been
developed through the College & Manning JV, the King &
Portland JV and the Downtown West JV, all of which are progressing
well."
The Montreal Property
Located on the northeast corner of Rue St. Paul and Rue St.
Sulpice, this property is comprised of 79,778 square feet of GLA,
all of which is leased to tenants consistent in character and
quality with Allied's tenant base. Built in 1861, the building was
renovated and upgraded in 2001.
The Pilkington Building, Calgary
Located on northeast corner of 11th Avenue S.E. and 3th Street
S.E., this property is comprised of 48,223 square feet of GLA, all
of which is leased to tenants consistent in character and quality
with Allied's tenant base, and 44 surface parking spaces. Built in
1913, the building was renovated and upgraded in 2012.
The Biscuit Block, Calgary
Located on northwest corner of 11th Avenue S.E. and 4th Street
S.E., this property is comprised of 54,073 square feet of GLA, all
of which is leased to tenants consistent in character and quality
with Allied's tenant base, nine surface parking spaces and 30
underground parking spaces. Built in 1912, the building was
renovated and upgraded in 2013.
Closing and Financing
The acquisitions in Montreal and Calgary are expected to close
in February and March of 2014, subject to customary conditions. The
purchase price for the three properties represents a capitalization
rate of approximately 6.8% applied to the current annual net
operating income ("NOI"). The properties will be free and clear of
mortgage financing immediately prior closing. Allied plans to place
mortgage financing on the properties on or soon after closing and
will fund the equity component of the acquisitions with
cash-on-hand.
College & Palmerston Joint Venture, Toronto
491 College Street and 289 Palmerston Avenue are comprised of
15,651 square feet of land on the south side of College and the
east side of Palmerston. The College portion has 90 feet of
frontage and includes a heritage building with just over 10,000
square feet of GLA. The Palmerston portion is separated from the
College portion by a public laneway and is currently used for
ancillary parking. The property was acquired by Allied and RioCan
on a 50/50 basis in late December of 2013 for $7.7 million without
the use of mortgage financing. While currently operating the
property for rental purposes, the joint venture intends to
intensify it over time by creating a mixed-use office, retail and
residential complex, similar in concept to the one contemplated by
the College & Manning JV.
Cautionary Statements
This press release may contain forward-looking statements with
respect to Allied, its operations, strategy, financial performance
and condition. These statements generally can be identified by use
of forward looking words such as "may", "will", "expect",
"estimate", "anticipate", intends", "believe" or "continue" or the
negative thereof or similar variations. The actual results and
performance of Allied discussed herein could differ materially from
those expressed or implied by such statements. Such statements are
qualified in their entirety by the inherent risks and uncertainties
surrounding future expectations, including that the transactions
contemplated herein are completed. Important factors that could
cause actual results to differ materially from expectations
include, among other things, general economic and market factors,
competition, changes in government regulations and the factors
described under "Risk Factors" in Allied's Annual Information Form,
which is available at www.sedar.com. These cautionary statements
qualify all forward-looking statements attributable to Allied and
persons acting on Allied's behalf. Unless otherwise stated, all
forward-looking statements speak only as of the date of this press
release and the parties have no obligation to update such
statements.
"Capitalization rate" is not a measure recognized under
International Financial Reporting Standards ("IFRS") and does not
have any standardized meaning prescribed by IFRS. Capitalization
rate is presented in this press release because management of
Allied believes that this non-IFRS measure is relevant in
interpreting the purchase price of the properties being acquired.
Capitalization rate, as computed by Allied, may differ from similar
computations as reported by other similar organizations and,
accordingly, may not be comparable to capitalization rate reported
by such organizations.
NOI is not a measure recognized under IFRS and does not have any
standardized meaning prescribed by IFRS. NOI is presented in this
press release because management of Allied believes that this
non-IFRS measure is relevant in interpreting the purchase price of
the property being acquired. NOI, as computed by Allied, may differ
from similar computations as reported by other similar
organizations and, accordingly, may not be comparable to NOI
reported by such organizations.
Allied Properties REIT is a leading owner, manager and
developer of urban office environments that enrich experience and
enhance profitability for business tenants operating in Canada's
major cities. Its objectives are to provide stable and growing cash
distributions to unitholders and to maximize unitholder value
through effective management and accretive portfolio
growth.
Allied Properties Real Estate InvestmentMichael R.
EmoryPresident and Chief Executive Officer(416)
977-0643memory@alliedreit.comwww.alliedreit.com
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